Other Insurance Basics
In purchasing insurance for recreational vehicles, you will need
to consider coverage options similar to the auto insurance coverages.
We encourage you to refer to our auto page for information on such
coverage.
In addition, some unique coverage is available for various recreational
vehicles. Information on some such coverage is available below.
Motorcycle insurance
Choosing the right insurance policy is much like choosing the right
bike. You want it to fit your needs and lifestyle, but at the same
time be within your budget. Although most states require you to
carry a minimum amount of liability coverage, other types of coverage
are usually optional. Always ask your insurance representative about
which laws apply in your state.
The key to finding which coverage is best for you involves learning
about all the options available.
Liability coverage
Liability insurance covers bodily injury and property damage that
you may cause to other people involved in an accident. It doesn't
cover you or your motorcycle. Find out if your coverage includes
Guest Passenger Liability, which provides protection in the event
that a passenger is injured on the motorcycle. Whether or not this
is included depends on the laws of your state and the company issuing
the policy.
Collision coverage
Collision insurance covers damage to your motorcycle if you are
involved in an accident. Your insurance company pays for damages,
minus your deductible, caused when you collide with another vehicle
or object. Collision insurance usually covers the book value of
the motorcycle before the loss occurred.
Comprehensive coverage
Comprehensive coverage pays for damages caused by an event other
than a collision, such as fire, theft or vandalism. However, just
like collision coverage, your insurance company will pay for damages,
minus your deductible, and cover only the book value of the motorcycle.
Keep in mind most comprehensive and collision coverages will only
cover the factory standard parts on your bike. If you decide to
add on any additional optional accessories such as chrome parts,
a custom paint job, trailers or sidecars, you need to look into
obtaining additional equipment coverage.
Uninsured motorist coverage
Uninsured motorist coverage pays for medical treatment, lost wages
and other damages if a driver who has no insurance hits you. If
your uninsured motorist coverage includes property damage, then
your cycle would also be covered under the same circumstances. Check
with your insurance professional to see if property damage is included
or needs to be purchased separately.
Underinsured Motorist Coverage
Underinsured motorist coverage is similar to uninsured motorist
coverage, except it applies when the other party has lower coverage
limits than you do and damages exceed the other party's limits.
Tips for the cost-conscious rider
Many factors can play a role in determining what your insurance
costs will be, such as being a graduate of a rider-training course,
your age, your driving record, where you live and the type of motorcycle
you own. * Many companies offer discounts from 10 to 15 percent
on motorcycle insurance for graduates of training courses, such
as the Motorcycle Safety Foundation (MSF) rider course. Riders under
the age of 25, usually considered a higher risk, may see some savings
by taking this course. Itís also a good idea for cyclists
who have already had accidents.
• Maintaining a good driving record with no violations will
also help reduce your premiums.
• In many northern states, riders may save money by buying
a "lay-up" policy. With a lay-up policy, all coverage
except comprehensive is suspended during winter months.
• Find out what discounts your insurance representative offers.
Multibike discounts for those insuring more than one bike; organization
discounts, if youíre a member of a motorcycle association;
and mature rider discounts for experienced riders, are just a few
possibilities. Discounts can range anywhere from 10% to 20%, depending
on the company and your state. Availability and qualifications for
discounts vary from company to company and state to state.
• Keep in mind that the type, style (such as a sports bike
vs. a cruiser), age of the motorcycle, number of miles you drive
a year and where you store your bike may also affect how much you
pay for your premium.
Choose the agent or company that's right for you. If you already
have car insurance, contact your insurer. Otherwise, ask friends,
relatives, and co-workers where they bought their car or motorcycle
insurance. Your local cycle shop may also have a company they refer
customers to. Also check local motorcycle magazines or newspapers
for insurance professionals advertising motorcycle insurance.
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Motor home insurance
All of the coverage options that you would find in "Auto insurance
basics" would also apply to insurance for your motor home.
You may also want to consider coverage for the personal belongings
you keep in your motor home or special Vacation liability coverage
which provides personal liability coverage for you while you are
temporarily living in your motor home.
There may be some slight differences in the coverage you need and
some larger differences in the cost of the insurance depending on
how you use your motor home. If you only put very few miles on your
motor home then you will likely qualify for a "low mileage"
discount.
On the other hand if you are using your motor home as a permanent
residence you will pay a higher price and have a different policy
which should include personal liability coverage.
In any case be sure to let your agent know how you are using your
motorhome.
Travel trailer insurance
The primary coverage consideration when you purchase insurance
for your travel trailer is physical damage coverage.
Coverage for damage to your trailer is made up of two separate parts:
collision coverage and comprehensive coverage. In general, collision
coverage insures you against damage to your trailer caused when
it collides with another object. Comprehensive coverage, sometimes
referred to as "other than collision" insures you against
other physical damage to your trailer caused by such events as fire,
theft, flood, and vandalism. These coverage options can be written
with a range of deductible options (generally, anywhere from $100
to $1,000). The higher the deductible, the lower the premium, and
vice-versa. This coverage is not required by the state of Idaho,
but may be required by your lender if you have a lien against the
trailer.
Liability coverage while the trailer is being pulled will extend
from the vehicle pulling it.
Like a motor home, if you are using your trailer as a permanent
residence you will need a special policy that will provide personal
liability coverage.
Boat insurance
Most companies provide limited coverage for property damage for
small boats such as canoes and small sail boats or small power boats
with less than 25 per hour horse power under a homeowners or renters
insurance policy. Coverage is usually about $1,000 or 10% of property
coverage. Check with your insurance representative to find out if
your boat is covered and what the limits are.
For other boats, you will need to purchase separate insurance. The
size, type, value of the craft and the water in which you use it
factor into how much you will pay for insurance coverage.
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Umbrella or excess liability insurance
Should I purchase an umbrella liability policy?
If you are ever sued, your standard homeowners or auto policy will
provide you with some liability coverage, which pays for judgements
against you and your attorney's fees, up to an amount set in the
policy. However, in our litigious society, you may want to have
an extra layer of liability protection. That's what a personal umbrella
liability policy provides.
It kicks in when you reach the limit on the underlying liability
coverage in a homeowners, renters, condo or auto policy. An umbrella
policy will also cover you for things such as libel and slander.
For about $150 to $300 per year you can buy a $1 million personal
umbrella liability policy. The next million will cost about $75,
and $50 for every million after that.
Because the personal umbrella policy goes into effect after the
underlying coverage is exhausted, there are certain limits that
usually must be met in order to purchase this coverage. Most insurers
will want you to have about $250,000 of liability insurance on your
auto policy and $300,000 of liability insurance on your homeowners
policy before selling you an umbrella liability policy for $1 million
of additional coverage.
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Keeping Costs Down
Five suggestions for keeping insurance costs down follow.
• Increase your deductibles
• Drop some coverage
• Ask about possible discounts
• Consider altering these rate-affecting factors
• Consult your agent
Increasing your deductibles
Increasing your deductibles from $250 to $500, or even $1000, can
save you a substantial number of premium dollars. Of course, higher
deductibles also mean higher out-of-pocket expenses at claim time,
too. So, consider whether or not you are financially positioned
to absorb higher up front costs before raising your deductibles.
Drop some coverage
Dropping or reducing coverage will surely save you premium dollars
in the short run; however, doing so may cost you more in out-of-pocket
expenses in the long run than you save in premium dollars. So, make
sure that you understand what coverage you need and purchase those.
Ask about possible discounts
Insurance companies offer a number of discounts, including the following:
discounted premiums for limited use of your motor home, paying premiums
in full, and paying through the use of automatic withdrawals. So,
make sure that you obtain these and other available discounts that
your specific insurance companies may offer.
Consider altering rate-affecting factors
Generally speaking, operating your recreational vehicles safely
as well as safeguarding your good credit will save you significant
numbers of premium dollars. In addition, avoiding tickets, keeping
your business with the same insurer for long periods of time, and
paying premiums in a timely manner are all factors that can all
have a significant positive impact on your insurance rates.
Consult with your agent
Your licensed agent is best equipped to advise you regarding your
individual coverage needs and possible discounts available. So,
we strongly recommend that you select a reputable and competent
agent to advise you with regard to your insurance needs.
Safety Tips
Observing the safety tips offered below will likely assist you
in your efforts to protect yourself and others as you enjoy your
surroundings.
Boating safely
There are thousands of recreational boating accidents per year.
Contributing factors to these accidents include traveling too fast
for water or weather conditions, driving under the influence of
drugs or alcohol, failing to follow boating rules and regulations,
carelessness and inexperience.
To prevent boating accidents, we offer these safety suggestions
Care and protection of vessel
1. Check weather forecasts before heading out.
2. Let someone know where youíre going and when you expect
to return.
3. Check engine, fuel, electrical and steering systems, especially
for exhaust-system leaks.
4. Carry one or more fire extinguishers, matched to the size and
type of boat. Keep them readily accessible and in condition for
immediate use.
5. Equip the vessel with required navigation lights and with a whistle,
horn or bell.
6. Consider additional safety devices, such as a paddle or oars,
a first-aid kit, a supply of fresh water, a tool kit and spare parts,
a flashlight, flares and a radio.
Care and protection of crew and guests
1. Make sure that every person on board the boat wears a life-jacket.
2. Know and obey marine traffic laws, the "Rules-of-the-Road."
Learn various distress signals.
3. Keep an alert lookout for other watercraft, swimmers, floating
debris and shallow waters.
4. Pay attention to loading. Donít overload; distribute the
load evenly; donít stand up or shift weight suddenly in a
small boat; and donít permit riding on the bow, seatbacks
or gunwales.
5. Don't operate a boat while under the influence of alcohol or
drugs.
Skippers can obtain free advice and boating-safety courses from
the U.S. Coast Guard Auxiliary. Upon request, the auxiliary will
conduct a Courtesy Marine Examination (CME) on your boat, checking
electrical and safety equipment and fuel hoses. Boats meeting safety
standards are awarded the CME decal "Seal of Safety."
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Safe Driving Guidelines
For your own safety and that of others, we encourage you to observe
the following guidelines as you drive your recreational vehicle:
• allow yourself sufficient time to drive to your intended
destinations so that your good judgment is not undermined by haste
and carelessness
• wear your seat belt if one is provided
• know and obey the laws on the water or roads
• drive defensively, paying close attention to how others are
driving
• keep plenty of distance between you and other motorized vehicles
• keep your recreational vehicle appropriately serviced to
avoid mechanical failure that could endanger you or others
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